Once back into town, you'll want to visit Fan who has obviously seen some ghosts. Poco will be there again stealing cakes and it's about time to talk to him. Talk to him twice and you'll give him back his Boombox. Dark Mists will clear (in a cut scene) revealing two new locations. The more you help them build back their homes, the more locations you can visit!
Now talk to Grandpa and he will notice that you have a few medals (if this does not happen, you might have to replay one or two quests). He will then tell you that he has hidden a special medal in town! Head up to his house and start exploring his fireplace and you'll found the Platinum Medal. If you want to see what you got in your mystery bag, go see Pamela. Upgrade your stuff if you need to with Disk as well.
It's time to explore the new clearings. Head out and towards your left side of the screen beyond the Radish Woods and you will come to a Fountain Clearing. Not surprisingly, you will find Pino here again, lost. She mentions something about a Statue. After she leaves, drill the statue that she is talking about and you find a fire part!
This is an element that you can add onto your drill. It will add the fire attribute to your attacks. Phantoms that are weak to fire will get additional damage. This can be seen when you see the words "weak point" flashing out of a phantom when you hit them. At times, the fire part is also used to light up stuff for gates to open. It's time to leave the fountain clearing.